Race-based Pricing Web Resource Page

TDI negotiating race-based pricing settlements

Since 2000, the Texas Department of Insurance and other state insurance departments have been investigating a large number of life insurance companies to determine whether any of them historically have charged non-white individuals more in premium than similarly situated white individuals, a practice known as race-based pricing. While the TDI has determined that the race-based pricing ceased altogether regarding the sale of new policies in the early 1970s, premiums currently being collected or death benefits paid on old policies issued before the early 1970s may not have been adjusted to eliminate the effects of this practice.

As a result of these investigations, TDI and several other states are the lead negotiators in a multi-state effort to settle claims against insurers who they believe may have historically engaged in race-based pricing. The policies involved are commonly known as industrial premium policies, small-amount life policies, industrial life and burial policies, or penny policies. Typically, these policies provide life insurance coverage. However, they might also provide accident and health or disability coverage.

TDI established this website to help people who believe that they may be eligible for additional benefits pursuant to one of the settlements negotiated by TDI. If you have one of these policies or are the beneficiary of such a policy, you might be entitled to refunds, additional free insurance, or a cash payment, even if the policy has already been terminated. To determine whether your policy is covered under one of these settlements, use the "Look up your carrier" link above to determine if the company that issued your insurance policy is listed.

Help Us Prevent Insurance Fraud

Insurance fraud is a crime. If you believe you've been a target of insurance fraud or you become aware of a fraud operation, report it to the TDI Fraud Unit onlineor by calling our toll-free Consumer Help Line at 1-800-252-3439.